Tips to budget a deck department like a business owner and keep track of spending.
This will surprise a lot of readers, but a yacht is actually a business, (albeit one that perpetually loses money, but stay with me!). Therefore, we can treat it like one, financially. The goal isn’t to spend less, it’s to utilize capital more efficiently. Make sure the money you spend is being put to best use. Most HODs on 50-meter-plus yachts will be given their own boat card, which can come as a shock (it did for me). Being responsible for spending money that isn’t our own is a strange concept and a bit of a learning curve, so here are the bits that have helped me the most.
Receipts and Record Keeping
At all times you must be accountable for the money you’ve spent. It must be 100 percent transparent. It’s the only way to avoid scrutiny weeks or months down the road if someone (captain/management/owner) decides to check up. This is a skill set no one talks about and can be hard to learn. Cultivate it and you’ll earn the trust of the owner and captain very quickly. Organize receipts into folders on your phone with Apple Notes, Notion or any other notes app. Label them under various headings — LSA expenses, deck-cleaning supplies, dayworkers, dockhandler tips, etc. Your labels are up to you. Segment them into weeks and months, and have it presentable and easy to read, with photos of all your receipts and invoices.
Quotes and Contractors
If you’re in the position of getting quotes, two or more is always best, and word of mouth is king. Ask around the yard, WhatsApp group chats and colleagues from other boats who they’d recommend. You’re not always seeking the cheapest quote. The most valuable recommendation is a boat who has had a job done some time ago and is willing to hire that contractor again. The real test is time and whether their job has held up after being at sea for months. I shouldn’t have to mention it, but getting kickbacks (when you’d accept a personal cut or “gift” from a contractor in exchange for choosing their quote) will be a career-ender and can end up with criminal charges being brought against you.
Spending Limits and Petty Cash
TOP TIPS
Always keep expenses transparent.
It’s not always about finding the cheapest option.
Word of mouth is king.
Petty cash must always be signed and dated.
Between captains and HODs, the best policies are daily spend allowances with a permission threshold for anything over that limit. That is, anything costing over a certain amount requires approval. It’s usually the same set-up given to a captain from the owner/management and can just be replicated down the chain with HODs, but broken down with smaller limits. It gives responsibility, doesn’t micro-manage but still keeps things in check. As for petty cash, you always need cash on hand for tipping line handlers, deliverables, local guides, etc. to smooth the process and receive the best treatment when you’re next in town. It’s up to HODs and captains to grant access to petty cash, but it must be on the condition that whoever uses it signs their name next to the amount along with date, time and a reason for use.
Yacht owners almost always own a yacht due to their life in business, so if you can handle their assets and money competently and transparently, you’ll not only find operating their yacht much easier, you’ll also come away with a very useful skillset. It’s something that comes in handy if you ever want a future career transition or want to start a business in your off-rotation, as many entrepreneurial yachties have done.